After the declines in the cryptocurrency market, many altcoins also entered a sharp correction process and lost up to 20% in value in a few hours. Biggest altcoin to fix in question Ethereum also participated in it and did not satisfy its investors at all.
Ethereum at Major Support Level
On August 19, Ethereum quickly declined, repeatedly breaking local support levels and then falling below the $1,500 price level. Fortunately, the 50-day moving average has managed to stay strong to support the Ethereum price action.
Thanks to the strong support level Ethereum priceThe decline in FX has stalled and resulted in an entry into a local consolidation channel. A slowdown in the decline is considered a positive sign for the market and indicates a lack of selling pressure to push the asset further.
Another reason behind the unexpected stance in the decline can be attributed to the weekend trading session, which is known for the lack of trading volume. The true intentions of traders and investors will be revealed on Monday when the US and European markets are open.
For a recovery rally to be triggered, Ethereum will need to make a quick rebound from the values we are seeing right now, a move that will save it from the recent 15% drop.
According to volume profiles; the market did not reflect an increase in the activity of traders and investors; This means that the asset follows the performance of the market rather than being affected by events in the Ethereum ecosystem.
At the time of writing, Ether was trading at $1,614 and is showing signs of a slight recovery, with a 2.4% recovery over the past 24 hours. ETH is also up 5% from its local low on August 18.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.